Regulations to support high value dealers to comply with the AML/CFT Act

Overview

The Ministry of Justice is seeking submissions on proposals for regulations under the Anti-Money Laundering and Countering Financing of Terrorism (AML/CFT) Act 2009.

These regulations relate to high value dealers, who are defined as someone who, in trade and in the ordinary course of business, buys or sells specific 'high value goods' for cash at or above a specific threshold. 'High value goods' include jewellery, precious metals, precious stones, watches, motor vehicles, boats, art or antiquities.

Summary of proposed regulations

The key regulation we are seeking your views on is defining the applicable threshold for high value dealers. This is the value a cash transaction needs to be at or above to trigger obligations under the AML/CFT Act. Transaction values below the applicable threshold or not in cash do not trigger obligations.

We are also seeking your views about a proposed regulation to clarify obligations for registered auctioneers under the AML/CFT Act.

Additional reading:

• Tackling money laundering and terrorist financing
• Obligations for businesses trading in high value goods
• "Keep our money clean" public awareness campaign

Why your views matter

The AML/CFT Act aims to detect and deter money laundering and terrorism financing. It requires certain businesses to put certain measures in place.

Amendments to the AML/CFT Act in 2017 extended the AML/CFT regime to cover more businesses at risk of being used to launder money and finance terrorism. High value dealers will have obligations from 1 August 2019.

Regulations are required to be issued to support the inclusion of high value dealers in the regime. Before this can be done, the Minister of Justice is required to do everything reasonably possible to engage with those people affected by the proposed regulations.

What happens next

The survey has closed, and we're in the process of analysing the submissions we've received.

Once completed, this analysis will then form a recommendation about what the applicable threshold should be, and whether a regulation is required to clarify obligations for registered auctioneers. The recommendation will be provided to the Minister of Justice, Hon Andrew Little. The Minister will then seek Cabinet's approval to issue regulations.

If you have anything further you would like to tell us, please get in touch at aml@justice.govt.nz.